Intellect Design Arena reports net loss of Rs 17
CHENNAI Financial technology player Intellect Design Arena The reported income of Rs 327 million in the July-September quarter decreased by 4% compared to the previous quarter and decreased by almost 15% compared to the same quarter last year.
The company's profitability was also affected during the quarter, as it reported a net loss of Rs 17 crore in the reporting period compared to a profit of Rs 3 crore in the June quarter.
While the general technological demand Slow down In financial services performance was reduced, the company said that license revenues fluctuated between Rs 28 Rs and Rs 116 Rs depending on the closing of agreements, and volatility has made total revenues unpredictable.
In addition, a two-digit $ 1 million deal with a global Top 20 bank was postponed this quarter.
The company also reported pending orders for orders of around Rs 400 crore from September 2019 of the Government e-Marketplace (GeM), and pending orders related to other cloud agreements were Rs 375 crore .
“While deferral of a large multi-million-dollar deal and external factors have depressed revenues this quarter, our readiness to capitalise on the market shift towards cloud and our industrialization successes, provide us confidence for the future,” Arun Jain, chairman and MD, Intellect Design Arena , said.
The quarter recorded nine wins in digital led agreements, including four major transformation agreements, and Intellect began operating in 13 financial institutions worldwide during this quarter.
“While top line growth in this quarter has not been to our expectations, our efficiency drive has let to cost reduction by Rs 10 crore over year ago which will also ease the pressure on our cash flows,” Venkateswarlu Saranu, CFO, Intellect Design Arena , said.